LIMITED LIABILITY PARTNERSHIP
LLP is one of the easiest types of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds.
Difference between LLP & Partnership
LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.
Number of Partners
LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, a LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of a LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.
Limited Liability Protection
The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner's misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.
Non-Resident Indian (NRI) & Foreign Ownership of LLP
Post changes to FDI regulations on 10th, November 2015, 100% FDI in LLP is permitted under the automatic route. In most sectors, 100% FDI in LLP is allowed through the automatic route, and there are no FDI-linked performance conditions. In addition, LLPs will also be permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route. Therefore, FDI in LLP is now permitted, and NRIs or Foreign Nationals can start or invest in an LLP.
Documents Required - Each Partner
Partners
- PAN Card for Residents or Passport for Foreigners
- Driving license /Aadhar card/ election identity card or any other identity proof issued by the Government
- Less than 2 months old bank statement or telephone bill
- Photograph
- Digital Signature
Registered Office
- Rent Deed
- Consent if Office owned by Partner
- Building Tax
- Telephone bill with address, Gas Bill with address latest within 2 months
Other Details
- Main Object
- Name
- Amount of contributions
- Ratio of share between partners
- Email ID
- Promoter’s Educational Qualifications
- Phone number
- Duration of stay at present residential address
Packages
Basic Package
(2 Partners)
- Preliminary discussion with Expert.
- Digital Signature Promoter.
- PAN of the Firm.
- TAN/TDS Number.
- Bank Account Opening Document Support.
- GST Registration.
- PF and ESI registration if required.
Premium Package
(2 Partners)
- Preliminary discussion with Expert.
- Digital Signature Promoter.
- PAN of the Firm
- TAN/TDS Number.
- Bank Account Opening Document Support.
- GST Registration.
- MSME Registration.
- PF and ESI registration if required.
- MSME Registration.
- Consultation for accounting and compliance services with expert.
*Cost of Stamp paper as per Government rules
Deliverables
- Preliminary discussion with Expert
- Digital Signature Promoter
- PAN of the Firm
- TAN/TDS Number
- Bank Account Opening Document Support
- GST registration
- PF and ESI registration if required
- Consultation for accounting and compliance services with expert
Basic Package
(2 Partners)
- Preliminary discussion with Expert.
- Digital Signature Promoter.
- PAN of the Firm.
- TAN/TDS Number.
- Bank Account Opening Document Support.
- GST Registration.
- PF and ESI registration if required.
Premium Package
(2 Partners)
- Preliminary discussion with Expert.
- Digital Signature Promoter.
- PAN of the Firm
- TAN/TDS Number.
- Bank Account Opening Document Support.
- GST Registration.
- MSME Registration.
- PF and ESI registration if required.
- MSME Registration.
- Consultation for accounting and compliance services with expert.
